Bonuses - gross or net?

lizards

When entering a bonus figure into a mortgage calculator, should this be the gross value, like the base salary, or the after tax net sum received? What about overtime?

"Bonus" (sorry..!) question: Also, if it's a percentage-based annual bonus, should I give the value of the last bonus given that can be proven with documentation, or the one expected next time round if there has been a significant payrise since?

Thanks!!

ACG

Whos the lender? They all have different criteria - some only allow half, some will average the last 3 years then halve it or take a percentage.
What do they ask for?

It should have the information on their website, you might have to look at Mortgage info or FAQ section but it will be on their site somewhere.

dwsjarcmcd

I would expect that you put in the gross amount you receive. The lenders systems should then calculate amount they would lend using their own individual rules around affordability and how they treat bonus and overtime

lizards

Thanks!!

It's no specific lender - I was just trying out a couple of the mortgage calculators and wondered what figure I should be putting in. I did have a poke about on the websites but nothing obvious stood out - maybe I should look harder.

Hoping it's gross! Every bit helps.

Does anyone know if stock options/units count too? I'm guessing not, but figure there's no harm in asking..

The_J

No, cash only.

I would do the calculations without the bonus income. A lot of lenders are particularly cautious about using them, especially ones paid annually.

lizards

Thanks. Yep, I assumed as much. To be honest there's not that much value in them, but anything that improved our affordability would only be a good thing.

Same goes for the bonus - for the sort of house we're needing the base salary is enough, it's just the bonus improves the affordability side of things.